Legal Requirements To Be Fulfilled For Starting a Business In UAE

UAE is one of the most investor-friendly nations around the globe. The visionary political leadership has formulated policies and regulations to aid expatriates in setting up businesses effortlessly. Having said that, it is of paramount importance to know the legal requirements to be fulfilled for starting a business in UAE. The information about it will help you preclude unnecessary delays and confusions.

As you are here and reading this content, you must be one of those ex-pat businessmen, hoping to reap a fortune in the UAE. It will be better if you seek support from an established business set up service in Dubai/ UAE, like ours,  for supporting you during the process. We will guide you regarding the best business options and get the set up done quickly.

Even though we have pointed out the necessity to know about the legal requirements, you don’t have to be apprehensive. The country’s legal framework is also aimed at the smooth functioning of business entities. Only that you must abide by the regulations in place. Let’s see the legal requirements to be fulfilled for starting a new business in UAE:

Legal Form of the Business

It’s great that you have chosen the land of great opportunities to set up a business. You are on the right track. With dedicated efforts and perseverance, you will own one of the top business empires soon. However, you must identify the type of business entity you plan to set up, the business activity you are going to pursue and the jurisdiction to operate. Starting a business in Dubai is a crucial decision because commencing your business at the right time with good resources is necessary. A leading business service provider can help you guide your UAE business in the right direction. 

The legal form or legal structure of the business must be finalized before you proceed further. There are varying business structures available, which differ from each other. The basic requirements or legal process involved in forming each is different.

You can form the following types of companies in the UAE:

• Limited Liability Company (LLC)
• Sole Proprietorship
• Corporation
• Limited Partnership
• Trust

Intellectual Property Rights

Is your company planning to introduce innovative products or novel methodologies? Then, you must know about intellectual property rights and ensure that you have obtained the rights accordingly. Otherwise, others’ may copy your creativity. They may also claim the right on the invention, forcing you to pay them the penalty for copying their product.

Not only that you must protect your company trade name, business domain, idea, patents, trademarks, symbols and formulae and all the relevant data before publicising those. Consult Kiltons to know more about intellectual property rights and the procedure to protect those. We will help you to get the rights through the proper process.

Obtain a License According to Your Business

You must have a trade license for carrying out business activities in the country. The license will stipulate the jurisdiction and the limitations regarding the activities. The concerned authority, Department of Economic Development (DED) in most of the emirates, will issue a business license only after examining the documents. You need to get approvals from relevant departments and ministries also, before submitting the application to the DED.

For example, if you are thinking of a restaurant in Dubai, the approvals from the health ministry, food and safety department and Dubai Municipality is essential for processing the license.

Also read, A Detailed Guide to Starting a Restaurant Business in Dubai

Conclude Agreement with Your Partners

You may be planning to start a business in partnership with your friends. There must be a firm and written agreement concluded. It will prevent any kind of dispute. Even if friction arises among partners in due course, the resolution will be easy with the agreement in place.

Employees Duties, Responsibilities and Rights

Don’t miss out to lay down a detailed guideline regarding the duties, responsibilities and rights of the employees. It has to be given to each employee whilst joining. Thereby, any legal dispute in the future could be avoided and 100% output from the staff could be achieved.

Observe Safety Norms and Precautions

None of the activity should be harmful to employees. If the working environment poses a danger to the health or safety of the employees, they must be given proper safety equipment to prevent any harm. In addition, you must ensure that they know the safety precautions and are following those properly. Failure to observe these will invite stringent actions from the authority. The governmental agencies may impose fine or withdraw license if it is found that you are not pursuing the health and safety regulations.

Kiltons: Your Business Consultant in UAE

Kiltons has more than two decades of experience in setting up and supporting businesses in jurisdictions across the UAE. We will provide you with unparalleled support for setting up a business entity in this land of great opportunities.  Talk to our professional team concerning any kind of confusion, doubts or queries.

We will act as your business consultant and will extend every possible help to ensure optimum growth to your firm.

Are you looking for a reliable business consultant in UAE? You are at the right place. Contact us now.